Most everybody understands that Apple is a successful company, but the extent of its success has surpassed the expectations of even the savviest of tech analysts. Apple’s quarterly report was recently made public, and what it reported was absolutely staggering. Every quarter, Apple releases its quarterly report, and time and time again, people are amazed at how successful this company is. But, this time, many people are absolutely astonished at the financial success of what is known as the “world’s largest start up company.”
According to a recent post on www.cnet.com, the fiscal third-quarter results represent an 88 percent increase in revenue over the fiscal third-quarter results from only one year ago. An 88 percent increase in revenue is no small feat, especially when we are talking about a company that earned $8.35 billion by last year at this time. So, doing the math, an 88 percent increase from $8.35 billion is $15.7 billion. And, of this $15.7 billion in revenue, Apple reported that it earned $3.25 billion in profits alone. To say that Apple is a profitable company, then, is an utter understatement.
Although most analysts had high expectations for Apple’s third quarter, these results surpassed even the most generous estimations. Again, according to www.cnet.com, Wall Street professionals had estimated that Apple would report between $13.82 billion and $15.74 billion in revenue, so Apple not only met, but it exceeded most everybody’s best expectations. Apple shareholders are probably wondering what this means for them in dollars and cents. Per share, this revenue is bringing increases of between $2.65 and $3.74. As such, Apple is not only pushing the envelope in the technology sector, but also helping many Americans get through the economic crisis that we are facing.
What is it that brought such a dramatic increase in third-quarter earnings over last year? As one might guess, the iPad and the iPhone 4 had quite a bit to do with this pleasant surprise. Apple reported that it sold well over 3 million iPads during this quarter alone. Additionally, Apple reported that it sold nearly 8.5 million iPhones in this quarter, which is up more than 60 percent from last year at this time. In addition to the introduction of the iPad and the staggering increase in iPhone sales, Apple also enjoyed a dramatic increase in the sale of Macs. Compared to last year, Apple has sold 33 percent more Macs during this third quarter.
So, while it is undeniably true that America has suffered through the better part of a recessionary period, much can be learned from Apple’s financial report. Importantly, people simply are not cutting technology from their budgets, as the numbers clearly indicate. While consumer discretionary spending has reduced over the past couple of years; in regards to Apple products, consumers are still willing to spend. And, really, with the introduction of so many new and exciting products, it is no wonder that consumers are spending in this manner.
